I think my box is beefy enough, it was a bandwidth thing for me. Takes me 3 minutes to put something on a USB key and walk across the basement. Problem solved.

Haha, ya you could do that but it's more convenient just to turn on the PS3 and have your whole library there for you to choose from. And ya 1080p if you're wired should be no problem, but I was talking about over wireless. External hard drive would be a good choice to keep all your movies/audio on so you could just move it from your computer to ps3 when you want to watch or listen to stuff. But then again your limited to using your media library on whichever device the hdd is attached to at the time. 500gb 2.5" hdd's are also cheap these days, been thinking of putting one in my PS3 or at least a 250gb. Yup lots of ways to get your media on PS3.

I also agree with being able to listen to music while performing other tasks on the ps3 but even when you're on the PS store you can't view XMB it makes you exit first.

if you want to stream wirelessly it can't be anything higher than dvd quality as anything higher you will get serious lag. There just isn't the bandwidth (you may still get stuttering even with a DVD quality).